Category: Leasing Terms

  1. A-D
  2. E-H
  3. I-L
  4. M-P
  5. Q-T
  6. U-Z

Advance Lease Payments

Many leasing transactions call for one or more payments in advance. As a rule, when Advance Payments are required for more than the just first periodic payment, the additional Advances will apply to payments due at the end of the Lease. If payments are made monthly, for example, one advance will apply to the first month’s payment while any additional advances will be applied to payments due at the end of the lease term. Advance Payments are payable at, or prior to, lease inception.

Broker

A broker is an intermediary between the lessee and lessor. The broker arranges a leasing transaction between an equipment buyer and a funding source for a broker fee.

Broker Fee

This is the fee or commission paid to the broker for his/her services. Typically, this fee is paid to the broker by the funding source once a lease transaction is complete.

Capital Lease

A lease where at the end of the lease term, the lessee can purchase the equipment at the end of their lease term for fair market value, and that the fair market value will not exceed a certain dollar amount or percentage.

Capped Fair Market Value

A statement in a lease agreement which states that the lessee can purchase the equipment at the end of their lease term for fair market value, and that the fair market value will not exceed a certain dollar amount or percentage.

Certificate of Acceptance

A certificate of acceptance is a signed verification by the lessee that they have received the equipment to be leased. Once this document is received by the funding source, the funding source will release funds to the vendor and broker.

Corporation

A general corporation, also known as a “C” corporation is the most common corporate structure. A general corporation may have an unlimited number of stockholders. Consequently, it is usually chosen by those companies planning to have more than 30 stockholders or large public stock offerings. Since a corporation is a separate entity, a stockholder’s personal liability is usually limited to the amount of investment in the corporation and no more.

Cross-Corporate Guarantee

A guarantee by one corporation to cover the payments of another corporation if that other corporation was to default on its lease or loan. A cross-corporate guarantee is usually requested if the company trying to secure a lease is too new or not creditworthy for the dollar amount they are asking for.

Default

A default occurs if a lessee does not comply with all of the terms of a lease agreement (not making payment, etc.). Generally, after a default, the lessor (funding source) can exercise all of its right under the lease to repossess the property and seek monetary damages.

Dollar Buyout

An “end of lease” option where the lessee purchases the equipment for $1.00.

Page 1 of 512345

hogan outlet hogan outlet online louboutin soldes louboutin pas cher tn pas cher nike tn pas cher hogan outlet online hogan outlet online hogan outlet online hogan outlet online hogan outlet online hogan outlet online hogan outlet online hogan outlet online louboutin pas cher louboutin pas cher louboutin pas cher louboutin pas cher louboutin pas cher louboutin pas cher louboutin pas cher louboutin pas cher woolrich outlet woolrich outlet pandora outlet pandora outlet